Organisational objectives 3 On completing this chapter you should be able to: Know and understand

6. 
Why might short-term profit maximisation not be an 
appropriate objective for a car manufacturer?
7. 
Explain the meaning of the corporate objective ‘increasing 
shareholder value’.
8. 
Why might the owners/directors of a small private limited 
company set a
profit-satisficing objective?
9. 
Why might the objective of increasing shareholder value 
conflict with corporate social responsibility?
10. 
Why should departmental objectives be coordinated?
11. 
Why are more companies adopting objectives that include 
corporate social
responsibility?
12. 
What do you understand by the term ‘ethical code of conduct’?
13. 
Explain the possible benefits to a clothing retailer of strictly 
observing an ethical code when choosing and checking on its 
suppliers.
14. 
Why might some firms decide not to act ethically in a 
competitive market?
15. 
Using a business example from your own country, explain why 
its key corporate objectives might change over time.
16. 
Identify 
two
factors under each of the SWOT headings for any 
business that operates in your country.
17. 
Select a business that operates in your country and give an 
example of how it could adopt a ‘market penetration strategy’.
18. 
Select a business that operates in your country and give 
an example of how it could adopt a ‘market development 
strategy’.
19. 
Select a business that operates in your country and give 
an example of how it could adopt a ‘product development 
strategy’.
20. 
Select a business that operates in your country and give an 
example of how it could adopt a ‘diversification strategy’.
will be opened in the next few years in an attempt to gain ground on Tesco. It
aims 
to be the lowest-price supermarket to increase food sales further. In addition, it is 
expanding rapidly into non-food retailing. It plans to open ten new Asda Living stores, 
selling a huge range of items for the home – but not food.
Different businesses in different markets will often decide on different strategies for the 
future – even though overall objectives may be similar.